VOTE 30: ENVIRONMENTAL AFFAIRS
Portfolio Committee Briefing
Annual Financial Statements for the year ended
31 March 2014
Ms Nosipho Ngcaba
Director General
Department of Environmental Affairs
14-16 October 2014 -tbc
1
Presentation Outline
-
Expenditure per programme
Expenditure per economical classification
Transfers to Public Entities and other Agencies
Expanded Public Works Programmes & Projects
Donor Funding
30 Days Payment Report
Auditor- General report
2
Expenditure for the 2013/14 Financial Year
per Programme
Programme
Final
appropriation
Actual
Expenditure
R’000
R’000
Expenditure as
% of final
appropriation
Variance
R’000
1. Administration
767 018
765 026
99.7%
1 992
2. Legal, Authorisations and Compliance
104 258
102 934
98.7%
1 324
3. Oceans and Coasts
326 814
326 088
99.8%
726
4. Climate Change and Air Quality
229 760
229 760
100.0%
-
5. Biodiversity and Conservation
565 662
565 662
100.0%
-
3 138 885
3 138 885
100.0%
-
74 445
73 113
98.2%
1 332
5 206 842
5 200 307
99.9%
6 535
6. Environmental Programmes
7. Chemicals and Waste Management
Total
3
Expenditure per Economical Classification
Economical classification
Current Payments
Final appropriation
R’000
Actual
Expenditure
R’000
Balance
Surrendered
R’000
Note
1 537 320
1 532 226
5 094
662 324
874 996
659 222
873 004
3 102
1 992
Transfers and Subsidies
3 447 747
3 446 306
1 441
Provinces and Municipalities
Departmental agencies and accounts
Foreign Governments
Non-Profit Organisations
Public Corporations: DBSA: Green Fund
Expanded Public Works Projects
Other transfers
14
1 133 710
12 890
1 517
250 000
2 046 554
3 062
14
1 133 430
12 890
1 517
250 000
2 045 393
3 062
280
1 161
-
Payment for capital assets*
221 619
221 619
-
PPP payment for the new building
PPP IT infrastructure new building
Machinery, computers, office,
laboratories equipment,& financial assets
146 000
27 582
48 037
146 000
27 582
48 037
-
156
156
-
5 206 842
5 200 307
6 535
- Compensation of employees
- Goods and services
o/w payments for financial assets
Total
Funds surrendered to National Treasury
-Note 1: vacant posts not filled during the review of the establishment
-Note 2: Savings from goods & services
-Note 3: Saving on National Regulator for
Compulsory Standards transfer
-Note4: Saving on Expanded Public Works Projects
1
2
3
4
5
Detail Current Expenditure *
Goods and services
2013/14
R’000
2012/13
R’000
Consultants , contractors and agency/ outsourced services - Project Management cost, Smit
Amandla operating and maintenance cost and professional fees. (Annexure A)
Travel and subsistence. (Annexure B)
Venues and facilities
Other operating expenditure (refer to next slide)*
Operating leases – Accommodation charges and operating lease payments.
Inventory – herbicides, research supplies, oil & gas, food supplies
Computer services - External computer services, software license and operational systems.
Advertising – Media coverage services, recruitment, tenders
Owned and leasehold property - Renovations for the previous financial year (Fedsure forumPretoria and Waterfront building)
Communications – (Radio, TV transmission, National People's and Parks conference)
Training and staff development (courses & workshops)
Audit cost – External and Forensic investigations
Catering
Assets less than R5 000
Bursaries employees
Rental and hiring
Administrative fees (Registration, bank charges, management and handling fees)
Entertainment - Meetings with external and internal stakeholders.
Transport provided as part of the departmental activities.
Fleet services
357 882
340 382
141 279
38 969
58 201
66 678
62 796
52 693
27 264
15 991
142 283
30 219
57 484
67 488
59 893
36 068
26 820
21 745
17 385
12 483
8 077
4 022
2 518
1 740
3 058
1 608
311
34
15
16 590
7 368
5 718
4 071
3 989
1 680
1 675
1 139
232
62
10
Total
873 004
824 916
Notes on goods & services
Item
Description
Consultants , contractors and
agency/ outsourced services
Increase
Increased operation and manning cost for the SA
Agulhas and Algoa Vessels
Operating leases
Decrease
Additional rental/ accommodation charges in respect of
the NRM regional offices and operating lease payments.
Computer services -
Increase
The support and maintenance for Working for Water
and Fire Information Management System, Premium
support and 2nd year Enterprise Agreement with
Microsoft via SITA
New departmental building expenditure
Variance
R’000
17 500
5 754
16 625
6
Detail Other Operating Expenditure *
Notes
Other operating expenditure *
Expenditure
2013/14
R’000
2012/13
R’000
Air charter services & landing rights
Professional bodies, membership and subscription fees*
Printing & publications services
Resettlement costs
Harbour, dock fees
Courier & Delivery services
Other operating expenditure
Freight services transport goods
28 356
18 448
5 602
3 033
649
1 087
916
110
30 866
14 598
5 513
1 690
1 434
1 206
1 200
977
Total
58 201
57 484
* Refer following slides
7
Payment for Professional bodies, membership and subscription fees*
(R18 448)
•
•
•
•
•
•
•
•
•
Benguela Current Commission (BCC)
Intergovernmental Science –Policy Platform on Biodiversity & Ecosystem Services
(IPBES)
Commission for the Conservation of Antarctic Marine Living Resources(CCAMLR)
African Institute for Environmentally Sound Management of Hazardous & other
waste (AIESMH &W)
United Nations Environment Programme (UNEP)
Environmental Assessment Practitioners (EAP’s)
Interim Certification Board (ICB)
Environmental Systems Research Institute South Africa (ESRI)
Enterprise Licence Agreement
8
Allocation to Public Entities and Own Revenue
for the year ended 31st March 2014
Revenue
SANParks
R’000
SANBI
R’000
SAWS
R’000
ISWP
R’000
TOTAL
Total Allocation
544 264
264 254
182 943
125 580
1 117 041
DEA Operational
Infrastructure Grant
237 421
306 843
208 684
55 570
162 943
20 000
28 790
96 790
637 838
479 203
Transfers from other departments/institutions,
EPWP)
399 377
251 817
5 067
10 205
666 466
Total Transferred
943 641
516 071
188 010
135 785
1 783 507
Revenue
1 280 376
60 443
109 233
14 646
1 464 698
Revenue from operating activities/Admission
fees/Aviation income/Park revenue
Other income
Sales
Investment income
Donations
Fair value gain
Non-regulated commercial income
Penalties
1 200 012
36 735
81 952
11 902
1 330 601
20 169
33 529
21 275
5 391
-
14 304
1 871
6 522
171
840
-
898
4 616
5 520
16 247
-
2 039
675
10
20
37 410
35 400
33 088
11 092
840
16 247
20
Sub-total
2 224 017
576 514
297 243
150 431
3 248 205
-
(45 454)
38 654
(64 229)
(71 028)
2 224 017
531 060
335 898
86 202
3 177 177
Deferred grant /transfers
Total revenue
Public Entities Revenue and Expenditure for the year
ended 31st March 2014
Expenditure
SANParks
R’000
SANBI
R’000
SAWS
R’000
iSimangaliso
R’000
(2 224 017)
(531 060)
(335 898)
(86 202)
Total expenditure per annual financial
statements
2 183 266
491 240
295 734
107 015
Surplus/(Deficit) per annual financial
statements
40 751
39 820
40 164
(20 813)
Total revenue per annual financial
statements
NB: SANParks has recorded a surplus of R40,7 million as opposed to a deficit of R173 859 million due to the application of
GRAP 23 whereby all revenue received for infrastructure projects were recognised for the year under review.
Public Entities Revenue and Expenditure for the year
ended 31st March 2014
2,500,000
Revenue VS Expenditure
2,000,000
1,500,000
R'000
1,000,000
500,000
(500,000)
SANPARKS
SANBI
SAWS
Isimangaliso
Revenue
2,224,017
531,060
335,898
86,202
Expenditure
2,183,266
491,240
295,734
107,015
40,751
39,820
40,164
(20,813)
Surplus/(Deficit)
Public Entities Surplus/ (Deficit) for the year ended
31st March 2014
Surplus/(Deficit)
Reason
SANParks
R’000
SANBI
R’000
SAWS
R’000
iSimangaliso
R’000
40 751
39 820
40 164
(20 813)*
• R215 947 million
infrastructure grant
revenue recognised as
satisfied obligations
during the year under
review as well as the
security services.
• The subsidising of
employees' postretirement health care
benefit resulted in an
actuarial loss of R157
500 million.
• Outstanding forestry
grant claim from DAFF
(R19,4m)
• A decrease in the
Defined benefit
liability (R22,6m)
• Capitalisation of Noncurrent assets
(R24,2m)
• Gains from fair
value adjustmentinvestment property
(R38,7) This
property relates to
the portion of the
Waterkloof land
earmarked for subleasing. The value
of the land has
increased from
R44,5m to R83,2m.
•
•
This is a non-cash
loss and is largely a
function of reduced
recoveries from
projects and an
increase in operating
costs such as
security related to
boundary integrity
(R21,3m)
Write-off balance of
the amount due to
the entity by Sanyati
(R6,1m)
Auditor-General’s Opinion on Public Entities
Entity
Unqualified
Emphasis of
matter
Reason/Comments
Action
SANParks
Unqualified
None
None
None
SANBI
Unqualified
Material
under
spending of
the budget
Material underspent
on capital
expenditure by
R15,400 million
The variance resulted from the
timing differences between the
transfer of funds from National
Treasury and the actual
spending. The Capital
expenditure project are closely
monitored to ensure that they
are concluded on time.
SAWS
Unqualified
None
None
None
iSimangaliso
Unqualified
None
None
None
Allocations & Transfers to Other Agencies
DBSA
Green
Fund
Nat.
Assoc.
for Clean
Air
(NACA)
National
Regulator
of
Compulsor
y
Specificati
ons.
Global
Environm
ental Fund
(GEF)
BuyisaeBag
Compensation
Fund
Donatio
ns and
Liences
Social
Benefits/
Leave
gratitude
TOTAL
R’000
R’000
R’000
R’000
R’000
R’000
R’000
R’000
R’000
Allocated
Budget
Transferred
Balance
250 000
1 400
10 500
12 890
117
6 169
71
2 994
284 141
(250 000)
(1 400)
(10 220)
(12 890)
(117)
(6 169)
(71)
(2 994)
(283 861)
-
-
280
-
-
-
-
280
14
Allocations & Transfers
Expanded Public Works Projects
Working for
Water
Working for
Fire
Environmental
Projects
TOTAL
R’000
R’000
R’000
R’000
Allocated Budget
815 685
468 139
762 730
2 046 554
Projects
Incentives
698 852
116 833
415 296
52 843
630 512
132 218
1 744 660
301 894
Transferred
(814 231)
(468 418)
(762 744)
(2 045 393)
Projects
Incentives
(697 398)
(116 833)
(415 575)
(52 843)
(630 528)
(132 216)
(1 743 501)
(301 892)
1 454
(279)
(14)
1 161*
Balance
*Unearned Incentives to paid back to National Treasury
15
Expanded Public Works per Projects*
Expenditure
2013/14
R’000
Working for water
2012/13
R’000
814 230
662 519
-
493 290
Working for Fire
468 418
362 620
People and parks
141 336
215 748
Working for waste
165 051
188 069
Working for coast
149 662
114 448
-
85 359
Working for land operations
91 757
41 384
Beneficiary training
24 013
36 464
118 192
-
Wildlife economy
35 917
-
Youth environmental service
36 817
Sustainable land base livelihoods
Working for forest operations
Greening & open space management
Total
2 045 393*
2 199 901
16
Foreign Aid Assistance
Donor Country
Purpose
Budget
Allocated
R’000
Expenditure
Balance
R’000
R’000
United Nations on
Environmental Programmes
(UNEP)
Convention on Climate Change
& Reducing Mercury emission
964
1 669
(705)
United States Agency for
International Development
(USAID)
Compilation of ARID
Transfrontier Projects
216
216
-
Denmark
Waste Management Strategy
0
1 000
(1 000)
Germany
Climate Change Programme &
Supporting the development
and implementation of access
and benefit sharing policies in
Africa – South Africa
1 099
824
275
Australia
Funding agreement in relation
to South Africa land sector
measurement
1 240
2 006
(766)
3 519
5 715
(2 196)
TOTAL
17
Exception Report: Instruction Note 34 (Effecting Payments Within 30 Days)
Apr'13
R'000
FY 2012-13
Total Number of Invoices < 30 days
May'13
R'000
Jun'13
R'000
Financial Year 2013/2014
Aug'13
Sep'13
Oct'13
R'000
R'000
R'000
Jul'13
R'000
Nov'13
R'000
Dec'13
R'000
Jan'14
R'000
Feb'14
R'000
Mar'14
R'000
Total
R'000
1 233
2 321
2 015
2 375
1 460
2 349
1 942
1 878
2 405
1 463
2 821
2 492
24 754
R 226 931
R 618 409
R 204 892
R 485 186
R 227 060
R 540 377
R 361 155
R 379 726
R 513 605
R 387 090
R 353 244
R 668 993
R 4 966 669
Legislated Base line
30
30
30
30
30
30
30
30
30
30
30
30
30
Average days of payments
28
23
22
24
27
30
28
25
28
25
21
21
25
Total Expenditure < 30 days
Number of Invoices > 30 days
-
-
-
-
-
4
16
9
8
27
2
Total Expenditure > 30 days
R0
R0
R0
R0
R0
R 121
R 619
R 215
R 994
R 72
R 18
R0
R 2 039
0.0%
0.0%
0.0%
0.0%
0.0%
0.2%
0.8%
0.5%
0.3%
1.8%
0.1%
0.0%
0.3%
Percentage of payments > 30 days
-
66
Exception Report Effecting Payments within Thirty (30) Days
Instruction Note 34
35
Number of Days
30
25
20
15
10
5
0
Legislated Base line
Average days of payments
Percentage of payments > 30 days
Apr'13
30
May'13
30
Jun'13
30
Jul'13
30
Aug'13
30
Sep'13
30
Oct'13
30
Nov'13
30
Dec'13
30
Jan'14
30
Feb'14
30
Mar'14
30
28
0.0%
23
0.0%
22
0.0%
24
0.0%
27
0.0%
30
0.2%
28
0.8%
25
0.5%
28
0.3%
25
1.8%
21
0.1%
21
0.0%
18
Departmental Expenditure Trend
Year
Budget
R’000
Actual
R’000
% Expenditure
2004/2005
1 652 268
1 633 882
98.9%
2005/2006
1 753 307
1 746 154
99.6%
2006/2007
2 061 804
2 059 664
99.9%
2007/2008
2 790 521
2 788 757
99.9%
2008/2009
3 206 557
3 198 878
99.8%
2009/2010
3 510 641
3 503 338
99.8%
2010/2011
2 488 514
2 390 023
96.0%
2011/2012
4 201 616
4 108 549
97.8%
2012/2013
5 175 321
4 942 661
95.5%
2013/2014
5 206 842
5 200 307
99.9%
19
Auditor-General Report on the Financial Statements
•
Unqualified Audit (Clean audit)
•
Unauthorized and irregular expenditure:
– No irregular expenditure occurred or brought forward to the reporting year.
•
Fruitless and wasteful expenditure
– Possible fruitless expenditure from previous years project spending to the amount of R25,865
million has been disclosed.
•
Disclosure items in the financial statements
The department complied with all disclosure requirements, classifications and policy
frameworks as prescribed by Treasury. However, National Treasury has exempted the
department from applying Modified Cash Standards in respect of Infrastructure development
projects.
•
Transfers to agencies and other organisations
All transfers made are per prior management and Treasury approval as well as within
disclosure requirements.
20
21